Rachel Co. has the following account balances:
Cash $25,000 Liabilities $60,000
Fixed Assets 100,000 Equity 65,000
_____________________ _______________________________
Total Assets $125,000 Total Liabilities and Equity $125,000
There are 5,000 shares of Common Stock outstanding.
a) If the firm issues a $1.50 dividend, what will the ex-dividend price be?
b) What will the new account balances be? (Present the balance sheet after the dividend is paid).